Euro Remains Bearish on EU-Greece Talks

It seems that another week of downtrends has started today for the European single currency, as EU officials suggested that Greece will have to implement a harder budget-cut policy in order to be helped by the bloc’s financial authorities to end its growing fiscal crisis.

The euro started this week losing versus the greenback and currencies from its main trading partners as the European Union failed to present a concrete restructuring plan for Greece to bring its budget deficit to the levels expected for the southern European nation to be economically healthy. Greece is due to show results of its attitudes to tighten its budget deficit to the EU in March, and a considerable level of uncertainty regarding how this process will be done is declining attractiveness for assets in the Eurozone as traders remain skeptical regarding the solution possibilities for the Greek crisis without a high cost for other EU members.

The outlook for the euro remains unattractive and is likely to continue a losing streak specially versus the U.S. dollar and emerging market currencies, as not only Greece, but several other countries using the regional single currency are in a financial situation far from an acceptable level to attract investors.

EUR/USD traded at 1.3592 as of 00:38 GMT from a previous rate of 1.3609 when markets opened yesterday. EUR/AUD fell to 1.5299 from 1.5316.

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